Suppose an economy grows by 2.5 percent, the labor force rises by 3 percent, and capital rises by 1 percent. If capital takes 50 percent of real GDP and labor takes the other 50 percent of real GDP, then the growth in total factor productivity must be _____
a. 6.5%
b. 4.5%
c. 0.5%
d. 6%
e. 10%
c
Economics
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a. True b. False Indicate whether the statement is true or false
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When using equity financing, firms run the risk of ________.
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What will be an ideal response?
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